Remilia DAO Hack: $4.3M in Ether, NFTs Laundered
In A Nutshell
On June 17, blockchain security firm CertiK announced that approximately $4.3 million in stolen cryptocurrency from the March Remilia DAO exploit was laundered through Tornado Cash. This sum, predominantly in Ether (1,209.5 ETH), originates from a breach that occurred on March 16, involving the theft of substantial amounts of Ether and non-fungible tokens (NFTs) from Remilia, a decentralized autonomous organization (DAO) renowned for its Milady Maker NFT collection.
Details of the Remilia Hack and Asset Movement
The Remilia DAO fell victim to a hacking incident in mid-March, leading to the unauthorized transfer of digital assets to an external wallet. These assets were subsequently liquidated. Reportedly, Krishna Okhandiar, also known as Charlotte Fang, founder of Remilia and Milady, confirmed the hack. This episode was spotlighted by Dumpster DAO on social media platform X, which also disclosed the recipient address of the stolen assets. Analysis of blockchain data revealed this address’s involvement in selling linked NFTs and transferring significant sums of ETH to another account.
Tornado Cash’s Role in the Incident
Tornado Cash, a cryptocurrency mixer, became a pivotal tool in the laundering process of the assets stolen from Remilia, about three months post-theft. Cryptocurrency mixers like Tornado Cash are platforms that obfuscate the trail of digital assets, making it challenging to trace their origin and final destination. The movement of funds through such a service underscores the complexities and challenges in tracking and recovering stolen cryptocurrency assets.
Meme Coin Presale and Market Impact
In the aftermath of the Remilia hack, a memecoin inspired by the Milady NFTs, named Milady Wif Hat (LADYF), was launched on the Solana network. The presale witnessed substantial interest, amassing 91,486 Solana (SOL), equivalent to $18.7 million at the time, within just two hours. However, the creators of LADYF clarified their independence from Fang and the original NFT collection, emphasizing their admiration for the NFTs as the sole connection. Despite this, the value of the memecoin has since plummeted to new lows.
Our Take
The laundering of $4.3 million through Tornado Cash following the Remilia DAO hack is a stark reminder of the persistent challenges faced within the crypto security landscape. Such incidents not only highlight the ingenuity of malicious actors but also the critical importance of robust security measures and vigilant oversight in the operation of blockchain-based entities. Furthermore, the rapid proliferation and subsequent decline of the associated memecoin exemplify the volatile and speculative nature of the crypto market, stressing the need for investor caution and due diligence. As the industry continues to evolve, the lessons learned from these events will undoubtedly shape future security practices and regulatory frameworks.
Sources
– CertiK
